The Goal is a book by Eliyahu M. Goldratt, the business consultant who created the theory of constraints model for systems management. It was published in 1986. Eliyahu M. Goldratt (1948 - ) is an Israel-born physicist turned business consultant, the originator of the theory of constraints (abbreviation: TOC). ... Theory of constraints (TOC) is a body of knowledge on the effective management of (mainly business) organizations, as systems. ... 1986 (MCMLXXXVI) was a common year starting on Wednesday of the Gregorian calendar. ...
behind schedule. His distant acquaintance Jonah, who represents Goldratt himself, helps him solve the company's problems through a series of telephone calls and short meetings. A second story line, which only occasionally intersects with the main topic of the book, describes Alex's marital life.
Cost versus throughput
The first big point made in the book is that traditional measures of cost accounting do not properly measure or predict the obvious "goal" (hence the title) of a company, which is to make money. Other measures need to be used that are both meaningful and reasonably measurable. For a corporation as a whole, Alex and his trusty controller Lou figure that net profit, return on investment, and cash flow are good measurements, but faced with the inapplicability of those to their own organization, they turn to "Jonah" who proposes they use a form of throughput accounting. Bold text --61. ... Throughput accounting is an alternative to cost accounting proposed by Eliyahu M. Goldratt. ...
Bottlenecks
The book goes on to point out the role of bottlenecks (constraints) in a manufacturing process, and how identifying them not only allows for removing them, but also yields a useful tool for measuring and controlling the flow of materials. By careful observation and manipulation of constraints, Alex and his crew manage to make their plant successful, and in the end Alex is rewarded with a major promotion. Theory of constraints (TOC) is a body of knowledge on the effective management of (mainly business) organizations, as systems. ...
References
Eliyahu M. Goldratt, Jeff Cox. The Goal: A Process of Ongoing Improvement. ISBN 0884270610
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With stars missing from both sides, Zimbabwean striker Kheli Dube had a goal and an assist as the New England Revolution defeated the Houston Dynamo 2-0 at Robertson Stadium in a rematch of both the 2006 and 2007 MLS Cups.
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